Failed Delivery Cost Calculator β True Cost of Missed Deliveries
Calculate the true cost of every failed delivery attempt. Redelivery trips, driver time, customer service contacts, and potential lost customers β the numbers add up fast.
β Failed Delivery Cost Calculator
How to Use This Calculator
- Enter monthly delivery volume β total first-attempt delivery attempts.
- Enter failure rate β percentage of first attempts where delivery is not completed.
- Enter direct costs β redelivery trip cost and customer service contact cost.
- Set CS contact rate β what percentage of failed deliveries result in a customer service contact.
Worked Example
2,000 deliveries/month, 8% failure rate, $9.50 redelivery, $8 CS contact, 60% CS rate.
- Failed deliveries: 2,000 Γ 8% = 160/month
- Redelivery cost: 160 Γ $9.50 = $1,520
- CS contacts: 160 Γ 60% Γ $8 = $768
- Total monthly: $2,288
- Annual: $27,456
Reducing the failure rate from 8% to 4% through SMS notifications and delivery windows would save $13,728/year. The technology to enable this (SMS APIs, delivery notification systems) typically costs under $3,000/year for this volume.
Frequently Asked Questions
Common causes: recipient not home (residential), address errors, gate/access codes missing, business closed, delivery window not communicated, and package size too large for letterbox. Pre-delivery SMS/email with ETA and one-click reschedule reduces residential failure rates by 40β60%.
Safe harbour (or safe place delivery) allows drivers to leave packages in a designated secure location without a signature. This eliminates failed deliveries for absent recipients at the cost of some liability. Most carriers require customer opt-in. Effective for reducing failure rates in suburban/residential areas.